(Reuters) – The Nasdaq hit a record high on Tuesday and the S&P 500 headed for its best day in six months as fears of a heavy economic impact from the coronavirus epidemic tapered off after China’s central bank intervened for the second straight day.
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., February 3, 2020. REUTERS/Lucas Jackson
The Dow Industrials .DJI was on pace for its biggest daily percentage gain in eight months. The benchmark S&P 500 .SPX had more than made up for last week’s 2% loss, which was its steepest weekly drop in six months.
China injected 1.7 trillion yuan ($242.74 billion) via reverse repos on Monday and Tuesday, helping Chinese stocks recover some losses and lifting the world equity index.
The stimulus boosted investor sentiment even as several economists cut forecasts for 2020 global growth as the fast-spreading virus hampers business operations in the world’